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he was muslim. >> slowly but surely, we'll enkourn this. the italians h it, now it's time for the muslims. >> how long it will take to counter is anyone's guess. debra tharick, cnn, new york. in the nation's capitol, they are calling this shark week. two huge bull sharks were found in the potomac river. a marine expert joins us live to tell us why these sharks are in that river and if people need to be worried. but first, time now for "your money." there are fresh signs of an economic recovery, but where are the jobs? welcome to "your money." i'm ali, christine is off this week. there is no green in august numbers, in fact, the jobs are down. we lost 54,000 jobs in august, but the private sector, private
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businesses, companies actually added 67,000 jobs. that is the holy grail. we want companies growing, we don't need government growing. companies growing means that the emphasis on economic growth has fallen where it is supposed to. steven moore is an editorial writer with the wall street journal. he is a respected sparring partner and a good friend of this show. last time you and i talked about jobs, steven, i described it as a glass one-quarter full. i stick with that assessment given today's nudews. you? >> ali, i generally agree with what you say. that's the mother's milk of the economy, so i was enkurnld cour that, and by the way, this report was more positive than others were reporting. the job losses were the result of census workers. those were part-time workers. the thing we need to focus on, ali, we need to generate about
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25,000 jobs a month just to keep the unemployment rate where it is because we have national growth in the labor force. so we have to do a lot better -- >> steven, that's just to keep the unemployment rate where it is. we don't want the unemployment rate where it is if 9.6% picked up the 9.6%. if we want to bring that down to where we were before this recession, under 5%, we have to add more than 25,000 jobs. >> no doubt about it, in fact, i looked at the numbers before this show. we have to create about 255,000 jobs net for the next two years just to get the unemployment down to 8%, which is not great shape. >> he's a former chief economist with the u.s. department of labor. bill, let me break this down so we're not constantly talking about numbers, because in america, jobs are much more than numbers, they're your livelihood. this is a demographic breakdown
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of the job situation in america. so remember, we just said the unemployment rate in america is 9.6%. that is the general population. adult men are actually suffering a greater unemployment rate than the general population. 9.8% just a little bit higher. look at women. 8%. substantially lower than the general population. teenagers, this is not a fantastic time to be a teenager looking for a job. 26.3% unemployment. white people in general, 8.7% lower than the national average. african-americans almost double the national average, 16.3%. hispanics, 12% and asians 24.2% lower than the national average. bill, we've talked about it before but many of our viewers may not understand the nuances of that. what does that demographic breakdown tell you about the economy we're in? >> the economy doesn't treat everybody the same. your unemployment rates vary by
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race, gender, they vary by education, entertainment, they vary by age, and this has been similar to past recessions, that similar to those on the lower part of the income scale or the job ladder because of lower levels of education, less skill, age, they've borne the brunt of this recession. but one thing that has been borne out in the data, it's similar, but during this recession before the recession started, men and women had similar unemployment rates. and men, because their exposure in construction and manufacturing, took a greater hit. >> and women took exposure to health care and areas that have shown some growth in our economy. >> one thing that will be important in our recovery in this economy is you have to make 150,000 new jobs per month, because if we're in this average
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of 90,000 jobs a month since january, they're going to be the slowest ones moving from the side streets of america to the main street of america. >> he is a ceo deco, you have the pulse of your finger on employment and temporary unemployment. there has been growth in part-time employment, freelance employment. you have you said yourself that is the natural process coming out of a recession? is it still natural, or are we staying too long in this world of temporary and no benefits jobs being added in terms of benefits added jobs? >> this is part of the recovery process, so as the recession ends and we see economic growth again, it begins from an unemployment perspective. we've now added some 390,000
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temporary jobs. those begin in those lower wage skills you were talking about ask then it moves into the professional skills. that's exactly what we're seeing in the recovery so far. it's up some 20% year after year, and that's moving into finance and accounting skills. legal skills, we saw about 4,000 job growths in many of those categories in this report. in i.t. and management services. >> is that reflected in your business, you're seeing the same sort of things? >> absolutely. we see the same thing in our business, and in fact, last month's report where we saw a decline in unemployment didn't make sense. so i think that was just a blip in the data, that temporary unemployment still leads the jobs. i agree it's not enough to get us out of here quickly, but if i look at the temporary side and
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the average wok werk week, we'r still moving in the right direction. >> today isn't the time for heated discussions because today is the time to help our viewers understand all the nuances of the single-most economic report of any given month at a time that could be a turning point. i want to break down the last few months' job losses and job creation between government and the private sector. let's go over to the wall and i can show you what this looks like. i want you to explain to our viewers what the distinction is. if you go back to january, there were very few jobs created in the first place, so the distinction didn't matter all that much. in february, we saw government jobs being lost, private sector jobs being gained. march, you always want that proporti proportion, more prooit sivate jobs, less government jobs. then in may you see a massive jump in prooit sivate sector an
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government jobs. june, loss in the private sector, loss in the public sector. give our viewers a sense of why this is important. >> first of all, it's not a complicated equation here. ali, as you know, the big bump up in the numbers, i think it was in june for the government employment, that was those census workers, the people who were norki inknocking on doors asking people to fill out their census forms. we all knew, and i said that back in june when i was on the show, that those jobs would disappear over the summer, and that's why you see the big decline in the government jobs that will probably last another month or two. the other thing going on with government employment is the federal government is still hiring a lot of people because of the stimulus, but at the state and local level where they have balanced budget requirements and they have to pay their bills, they've had to lay off workers. >> that's exactly right. steven, stay right there. thanks to the two of you. bill rogers, always a pleasure to see you. millions of americans remain out of work.
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i don't want to have an ivory tower discussion about jobs. this is about real stuff that matters. you want to know what washington plans to do about it. we're going to do that for you. president obama's labor secretary is with us, coming up next.
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we want to talk to you not only about what's happening out there in the work force, but what washington has planned for it. secretary chelise is the secretary of the department of labor. how are you? >> good, how are you? >> you have a great job, but if there was a reality show called the worst job in america, you might want to be on it with the labor secretary of the most persistent number of jobs being lost. tell me what troubles you about these job pictures we keep on seeing. >> what we've been seeing is actually wii bee've been able t private sector jobs. if you'll remember, when the president took over, we were losing 700 to 800,000 jobs. we've seen on the average about 90,000 prooivate sector jobs added. i would say it's steady, the path we're on is very good.
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you see increases in manufacturing and in construction for the first time in a while, about 19,000 more jobs added this time, but also in health care that continues to grow. so i'd say in this private sector economy, there is an increase occurring but certainly not as fast or as strong as we'd like to see it. that's why we need tax reform so we can help small businesses so more lending can be made available through small business owners. >> let me ask you this. i want to go back in time. a lot of people go back in time to determine who is to blame in this economy and this mess. i want to take you back in time to when you were a member of congress and one who was particularly close to labor and to working people. how -- what do you say to them, because 40% of the labor force has been out of work for six months and longer, and while what you are saying about tax cuts and about goosing small business and allowing them to get the loans that they need to get is important, there is sort of an urgency growing out there that's leading to a
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dissatisfaction about the end of this economy. so i'm almost looking to speak to congresswoman chelise for a moment and say what do you tell to working people out there who, through no fault of their own, they continue to be out of work? >> i recall when i was a house member long before the recession was really tagged as a recession in the area that i represented in east los angeles, southern california, we had unemployment rates as high as 9%. so for people in those communities, they've been suffering long before the recession was actually caused. and i would hope that previous administration would have moved quicker so we wouldn't have had to come out of the ditch. we're finally coming out of that ditch. it's slower because this is a very hard recession, but i think with the tools that we've been able to implement and the fact we were able to get recovery dollars to help provide a safety net for unemployed people, especially dislocated workers, but also looking at investments in green technology and training
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programs. we've given well over $750 million in green renewable energy training and also health care and i.t. and broadband. >> i want to ask you this, unemployment insurance, which is what you are responsible for and it's many people's lifeline, is under constant attack in this country. there is a growing group of people who say extension of unemployment benefits for the long-term unemployed actually keep them at home and not getting a job. i happen to not believe that. i don't think the data proves that. but the fact is you are overseeing a program that is under attack in congress. >> let me tell you, for every one dollar that the federal government gives through the ui program, 1.60 is generated throughout the community, and i can tell you that businesses are getting some benefit because people are purchasing goods and services. keeps the electricity on, keeps the gas in the tank so someone can continue to keep looking for
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that job. what i hear is that people need that as a lifeline, they've earned it and we should be able to stand up tall and provide that support until we get out of the woods. we're not out of the woods yet. >> secretary, one last quick question for you. we talked about people retraining for jobs. the government doesn't do much of that, and a lot of people think the government shouldn't do much of that. how do we deal with people retraining? do they have to watch shows like ours and find out what industries are hot and do it themselves? sdplz they c >> they can go on line themselves and look at where the jobs are occurring, find out if they need new training for these jobs and where they're located. i would encourage them to go to the web site. >> karen tumulty is a national political reporter with the "washington post," rex
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harrington is with i do not envy her her position because how much can the government actually do to fix this problem we're in right now? you yourself said the private sector needs to be creating jobs. what role does the government have in helping the private sector create jobs? >> well, look, i worked for the reagan administration. we had a pretty terrible recession back in 1980, '81 and '82. and actually, we took a different approach. we cut tax rates for business -- z . >> but your tax rates were much higher back then. >> it was. the point i'm making is we had a really strong recovery. at this stage in the cycle, we had 8% growth. all i'm saying is maybe we ought to try that approach since the fiscal stimulus approach of spending hasn't worked that well. >> any approach is welcome to be talked about on this show. your view of what's going on right now. we have had mixed messages on this economy in the last several
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weeks. a growing chorus of people talking about the growing recession. it's not that clear that it's a double dip. it's certainly not a strong and robust recovery. >> i'm putting this in my frame of reference which is that labor day begins the final stretch of mid-term elections. and where the democrats had hoped this would, in fact, turn out to be a recovery summer, people aren't feeling it. so the narrative of this election appears to be set. and at this point, it is looking like it's going to be a very bad environment for democrats. and their argument going forward is going to be, okay, you know, you don't think this has worked all that well, well, to electricito elect the republicans would be a turn-back that got us into this. this is the frame of reference we'll be seeing in the next couple months. the president is going to kick this off on monday in a labor day rally in milwaukee.
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>> rex, what's your view? >> i'm just struck by how uncertain everybody is. when you speak to economists, no one really knows what they should be doing. when you talk to steven, you know, he has a really clear sense of what has to happen here. >> that's why we love having him on. >> absolutely, but there were a lot of seizure vaurveys last we. you hear them say cut taxes, cut them from the rich, don't cut them from the rich, we're not sure. >> people keep saying, who is right? i wish i knew. stay tuned for several positive signs for the economy, but is that going to help democrats get elected or does the house go over to the republicans? stay with us. the hundred thousand mile powertrain warranty caught my attention. it's the chevrolet summer event, which means the only thing left to decide is who drives it home. me! her. me! qualified lessees now get a low mileage lease
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i use capzasin quick relief gel. [ male announcer ] starts working on contact and at the nerve level to block pain for hours. capzasin. takes the pain out of arthritis. there are a few indicators out this week that are actually showing positive signs for the economy. the biggest one is the jobs number. you'll find this confusing because we lost 54,000 jobs in
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august. how is that a positive sign? for two reasons. that 54,000 jobs is arrived at by a loss of 120,000 government jobs and a gain of 67,000 jobs in the private sector, and that's why we want it to be. personal spending edged up in july. that's the most recent month we have those numbers for and consumer confidence is up as well. let's talk about this for a second. karen tumulty, the white house isn't doing this particular job. they're not selling this as well as they could, partially because i think in some cases they would rather not be talking about the economy. what they are being held responsible for at the end of the summer is having called it the summer of recovery, and that didn't happen. having talked last year about how the unemployment rate would be lower than it is today and that not happening, i think they would rather the economy just recovered and they don't have to talk about it before these mid-terms. that'sen t not the reality. >> they're not on the ballot in
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these mid-terms, and certainly there are a lot of disappointed democrats on capitol hill, because they had hoped this would be an august where they were talking about the economy. but instead, you know, it's in part the white house's fault for some unforced airs and it's our fault in the media that we were talking about things like a mosque controversy in new york and, you know, a lot of things that, again, did not, i think, get to the basic, you know, gut concerns at this moment of most american voters. >> steven, i want to just reflect on something for a second. you and i have worked together for a long time. back in the end of 2007, the beginning of 2008, president bush and henly paulsen and ben bernanke every few days would come out in the morning and they would make some sort of pronouncement about the economy. it didn't make much sense. markets didn't like it, and it sort of just muddled the message. they kept talking about how things are okay. we saw president obama come out
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last monday and talk about the economy a little bit. i couldn't quite establish what point he was trying to make, and then in that address to the nation about the end of combat in iraq, he talked about the economy again. it did not seem like a crystal clear message. either they have to have a message or they don't. what do they have to do as we head into the mid-terms and what are the republicans doing in the absence of that message? >> well, it's difficult for the president because as karen will attest to, the two big issues with american voters right now are, number one, what we've been talking about, jobs, and number two, the enormous debt and these big deficits. those two things are big problems for the president. i'll say this on a positive note, ali, and this may surprise you. i actually think you're right there are some positive signs in the economy this week, and those concerns, if you had asked me three weeks ago are we going to have a double dip recession, i would have been very nervous about it, but now i think we're going to skate through this without another dip. that's the positive news. i think we may be slowly climbing out of this. >> mostly what has got you to
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shift your view on that, is it the consumer confidence or the job numbers? what makes you think it may not be as bad as it felt two weeks ago. >> the stock markets made a nice recovery from the big lows. number two, we're seeing business spending again, and i think that's a big deal. you can have the jobs until businesses out there are building new factories and purchasing new capital equipment and technology. that's happening. and of course, the consumer is finally starting to feel they can dip their toe in the water and go in the stores again. >> but rex, businesses have some money piled up. we've seen some mergers and acquisitions, which is a really interesting sign, and consumers have some money. we have a savings rate closing in on 6% from near zero. >> that's a really good thing. >> these are two good things. who is going to pull the trigger? >> it's not just some money, it's a lot of money. we're talking about a trillion dollars on the consumer side, balance sheets are back on
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track, but they're scared. it's kind of the thing we were talking about before, which is -- there is a lot of uncertainty about what's to come, what's the government going to do, what's the fed going to do, what's congress going to do? >> and most certainly, is my job going to be there in a year? >> right. so it doesn't put people in a good situation to spend money right now. >> let me show you a poll that the cnn research corporation has just conducted. back in july, the approval rating on president obama on the economy was 42%. it is now 40%. he's taken a bit of a dip in that poll. the disapproval was 57% in july, it's now 59%. karen, does this got to do with the administration and the obama administration and how they're dealing with the economy, or does this got to do with how the economy feels? >> i think it's more with how the economy feels because the administration every day will trot out some expert who will explain to you how their
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policies have helped keep the recession from being as deep as it otherwise might have been. >> which is a hard thing to measure. >> it is. it's pushing its string. the number i've been watching most closely that i think is really telling is that in a number of polls, if you ask people whether they or someone in their family has lost a job within the last year, the number is getting pretty close to four and ten americans saying yes. and that is such a traumatic thing for a family to go through that it just colors all your perceptions of everything else. >> high interest rates didn't stop people from spending, but losing a job or seeing somebody losing a job has done it. thank you to all of you. what a great discussion and adding some clarity to something that has once again become a confusing issue. lex harris, steven moore, karen tumulty, all of you. are mommy prices starting to
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stabilize? what does it mean for the value of your house or the one you want to buy, coming up next.
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a punch square if the nose to all you negative nellys. home prices actually rose in the last part of this year. let me put that gain into context for you. it is not across the board. there are other factors at play. susan wachter is a professor of real estate at the university of pennsylvania. the price of an existing family home on a nationwide basis is up year over year, but we've seen some signs there is trouble in the housing market. what is it from your perspective? >> the most recent data does show that prices are going up, but the increase is desell rating, and i think it's fair to say we're in a band of
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uncertainty, prices may have risen. but not a lot and we're in a lull at this point. they may not actually fall, but we see signs of slowing of the price rise. we're not likely to see a price rise in the next few months. >> so some people need to look at it on a national level for investments and how you look at the market, but many people, most of our viewers, i think, when you're thinking about housing you're thinking about the house you live in that you may be trying to sell or the one you might be trying to buy. let's take a look across the country. there are some hot housing markets out there. san francisco continues to be hot, san diego, minneapolis. these are all three cities with double digit gains in home prices. now you look at the cold housing markets and no big surprises there. las vegas continues to be down. that is an area that was overbilled. charlotte, a major banking center continues to get hit. seattle is down 1.8%. what stands out to you, susan, when you look at the housing
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market across the country and then you look at the differences in specific markets? why are there such disparities? >> the two key factors are jobs, job growth, and you hit upon that, for example, in charlotte. also the key factors are inventory. what is the overhang of houses in the market? for example, florida suffering from that. california actually doesn't have much of an overhang, that's why it's recovering faster. >> i got competing interests. i got foreclosures on one side that are keeping the price of homes down because of that overhang, and i've got fantastically low interest rates. which one is going to win out? >> on the long run, the interest rates will win out, but in the short run, it very well may be the overhang in the foreclosures. that's the major concern. >> does this look like a time to buy a house to you, all things being equal? >> if you are in the market for the long run, you are not timing them month to month. housing prices are down and
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interest rates are at all-time lows. but if you're looking to invest and get a quick return, unless you know your market and you are an investor, this is a time where many people are on the sidelines, and that makes sense. >> i know your specialty is real estate and finance which means those interest rates, these 4.25% interest rates on a conforming loan that is below $417,000, that's kind of amazing. i mean, is this something we're going to see for a long time? >> a long time, absolutely not. but we are going to see it, i believe, for -- no one can forecast interest rates, let's put that aside. but as long as the economy is in a lull, then interest rates will be low, and we don't see that job growth coming to take us out of this lull so fast, maybe a year from now, so there is some time to take advantage of these all-time historic low mortgage rates. >> you pointed out something i was going to say on a show we are focused on, the august job
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report. the reality is these two things cannot be looked at independently. if jobs continue to be lost, it's going to affect the housing market. dr. susan wachter, good to see you again. susan is the professor of finance at the wharton school at the university of pennsylvania. a fight over eliminating tenure in public schools and why some people say it's going to lead to better teachers.
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if the question is how does an economy prosper, the answer is through strong public education. the economic downturn and education reform efforts like "race to the top" are testing
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some perks of the teaching profession, particularly the job safety net called tenure. it's usually earned after three or four years of service in a public school district, but in one of the most competitive job markets in decades, tenure could get swept up in a wave of reform. >> i'm still pretty amazed that i got the job concerning the market. >> it's all smiles at new teacher orientation in valley stream, new york. for these new teachers, school starts on tuesday. so does the clock on a three-year probationary period they hope ends in tenure. the union-backed safety net that protects peopteachers from unfa dismissal. >> it's pretty overwhelming. think about it. managing classrooms, making lesson plans every week, meeting deadlines. all this is brand new to a first-year teacher and on top of it trying to pass each year to get to tenure. it's a lot.
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>> just about every state has a tenure law on the books for public schoolteachers. in states that don't, it's typically granted through local union contracts. it's job security in a tight labor market, but critics say it prevents districts from removing bad teachers from the classroom. >> these due process instructions were not intended to guarantee lifetime employment for teachers, but over time it became prohibitively expensive and time consuming for districts to attempt to fire a teacher, and today, most districts don't even attempt to do so on grounds of performance even though it's quite clear a teacher is ineffective. >> a teacher can be dismissed after receiving multiple poor evaluations in just 11 states. in the rest of the states, they can be fired but ultimately they're put on an approval plan. president obama is pressing states to rethink the evaluation process. unions say they're on board. >> by the end of the day, what teachers want more than anything
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else is to make a difference in the lives of kids, and we need the tools and conditions to do so. and part of that is a teacher development and evaluation system that will help us improve teaching. >> but for right now, these new teachers are more nervous about meeting their students than meeting administrators' expectations at the end of the year. superintendent mark bernstein isn't concerned. he said in a tight job market, he hired top notch educators. >> it's a tough job market. i'm really proud of what i see. i'm excited about what they're going to bring to the classroom. >> just about every state has some form of tenure protection. some states refer to it as a continuing contract or a term contract. now, for the 2009-2010 school year, that's the one that has passed us, teachers in 32 states, the ones in yellow here, were eligible for tenure after three years. eight states there in green wait a full four years or longer, but ten states, you'll see them in
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red, doled out the job protection after just two years or less in the classroom. critics think that is not enough time to make wise tenure decisions. the race to the top program has sparked reform in the past six months. in florida a measure to do away with tenure altogether passed the state legislature. it was vetoed by governor charlie crist. in colorado, unions will decide in this tight labor market. and tenure or not, a teacher can be fired after a single poor rating. coming up next, one of the most common interview mistakes could cost you the job. i'm going to tell you how you avoid making it.
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an important message for job hunters. do not use a real job interview to explore possible careers. that sounds obvious. our next guest says it happens all the time and it can cost you the job you so desperately need. ellen gorden reese is the author of the book with the best title in the world. it is called "can i wear my nose ring to the interview?" . the answer to that is no, unless you're interviewing with a nose ring installer. this is a remarkably detailed and specific conversation we're going to have. you say there are three kinds of interviews. >> right, there are exploratory interviews that people are ignoring, there are informational interviews and concrete job interviews. >> we think of that last one as the interview, but the fact is you really have to think about these in three different baskets. let's talk about the exploratory
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interview. this is the one we're cop-shooting people about treat these separately. >> people are going into interviews and they're being asked, why do you want to be in sales? and they're saying, i could do sales, i did that for years, but i'm also good at marketing. you can't do your soul searching in exploration in front of a potential explorer. >> what is an exploratory interview? who do you have that with? >> if you're in that phase and you're not sure what direction you should go in, you should be talking to people. friends, colleagues, career centers, anyone, but make it explicit -- >> people who aren't going to hire you. >> people who aren't going to hire you. sometimes you only have one shot with a person with a lead. should they be hiring you or should you be figuring out what you want to do with this person? >> you're suggesting there is a second process, an informational interview. >> and people confuse the two
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and sometimes the three, so in the second informational interview, once you've done the exploration and you understand what you might want to do, what you can do, what skills are transferrable, then you figure out which industry, what company, and you talk to people in that industry to find out as much as you can about those specific options. >> for instance, who? the first one i get, friends, career advisers, who is my information interview? how do i find these people? >> career fairs, trade shows. still use your friends and family, but now you're saying i've identified a family, a company, even a specific opening, and i want to talk to somebody who can help me get to that place. i'm now identified, i want to work for cnn. >> so we've got the exploratory interview and the informational interview, and if you are thinking of changing careers, until you've hit those two, you're saying do not go for a job interview. >> don't get your soul searching on me. perception is reality.
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the person who comes in and says, well, i'm thinking about this, i could do this, i could do that, or someone who convinces me that i want to work only for you. my interview should be exactly to that. >> you make it to that point, you have the job interview. viewers know what they want to, maybe not switching careers. >> here's the thing. all right? you cast doubt, you are out. in this economy there is no room for this. now you'll have done all your homework, have the informational interview. you're going to convince me through your knowledge of the company and industry i can do the job, i want the job and i know what it takes to get it done and i can do this for you. >> it's straightforward, this is one of these conversations that seemed obvious at the beginning. there are lots of people casting about. it's good to cast about. >> do the exploration but at the rite time, the right place, with the right people. don't do it in real job interview. >> excellent advice. ellen gordon reese is author of
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"can i wear my noise ring to the interview?" why you make some of the same mistakes as your favorite football or baseball star when it comes to money. poppy harlow takes a look inside a mobile cupcake business fueled by social media. >> all right, who's next, who's next? hey there. >> reporter: curbside cupcakes hasn't been around long. washington, d.c.'s, pink cupcake truck developed a following. >> one of those when oun raspberry lemonade. >> reporter: social media savvy is driving success. >> i'm tweeting and facebooking where my nexttop will be. they should be ready for us when we get there. >> reporter: fingers crossed? >> fingers always crossed. i still get nervous every time i go to a new stop. >> we actually were just passing by and saw these guys, but we've been tracking them on facebook. >> this is actually the third
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time i think it is i've been out here and now i'm addicting, wanting them every day. >> standing in line to get another one. >> reporter: an online cupcake calendar along with constant tweets and facebook updates keeps the cupcake mobile in touch with customers. >> when we're 15 minutes away we get the first cell phone notice saying we're almost there, 15 minutes and say the general area. then when we land we tweet out, again. >> reporter: customer feedback is a must. >> for example, today we have a flavor on the menu that was the idea of a customer. someone said, why don't you make raspberry with lemon? we thought, why not? thanks for the idea. today we have raspberry lemonade on the menu. >> reporter: with 13,000 facebook fans and 6,000 twitter followers, fans are usually just around the corner. >> the name of the way we move makes the information immediate and relevant to people. so it's one thing to say, oh, there's a cupcake truck around somewhere and another thing to say there's a cupcake truck outside my building exactly
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right now. we're heading off to the square, which is -- oh. you almost -- you just caught up. >> reporter: poppy harlow, cnn, new york. [car horn honks] our outback always gets us there... ... sometimes it just takes us a little longer to get back. ♪
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football season starts next weekend, but for all professional athletes it's not just about learning the playbook, it's about learning how to invest your money. the money they will make over their usually fairly short careers. for many of them, it starts with the basics. >> keep your spending under control you won't go broke. >> reporter: what if your entire professional career was five years or less, over by age 30, and every dollar you earned had to last you for the rest of your life? >> don't live like you're making $3 million, $4 million a year, live like you're making $150,000 a year. >> reporter: million-dollar salaries are a reality for athletes but doesn't guarantee a secure financial future, as the financial adviser knows too well. >> i put together here a little summary of how and why athletes, you know, basically find themselves in financial distress. >> reporter: he runs financial boot camps teaching the basics of money management to current and former athletes who may be
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good at xs and os but not so good at dollar signs. >> most of the athletes are visual learners. you show it to me, okay, coach, i can do that. so if you break it town into layman's terms where we really understand it, hey, this is it, this is this, if you do it like this, you're going to have this at the end, okay. >> reporter: ed compares a well-balanced portfolio to a well-balanced meal. >> we all have an entre with our meal. have 50% to 65% of your money in public securities. >> reporter: ed's ideal meal, 10% to 20% of veggie investments like hedge funds, met calls. fruit, real estate 7% to 12%, who doesn't like dessert? >> it's okay to have only of the dessert, private equity. >> not an entire cheesecake. >> reporter: ron dell white played a combined 32 years in the majors and got paid to keep their eyes on the ball. they left keeping an eye on their money to the
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professionals. >> getting ready for the season, you have kids, so many distractions away from your finances. >> you think about, i need to get hit two hits tomorrow or i struck out three times yesterday. so you're concentrating on the game. >> reporter: sound fundamentals are important in sports and investing, whatever the size of your paycheck. >> regardless if you're a professional athlete, homemaker, factory worker, ceo of a company, everybody makes basically the same mistakes with their money. >> we talked about investment mistakes, buying a house, talked about the unemployment situation, even what you do to get a job, how you interview for a job, how you research it. all of this is available on to great detail. there are calculators that will help you understand whether now is the time to buy a house for you. go to do noodling around there. there's an investor 101 on there. it's going to be very, very helpful to help you navigate through

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CNN September 5, 2010 3:00pm-4:00pm EDT


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